Irish hotel sales up 150% in Q1 2014

The positive trends witnessed in the Irish hotel market in 2013 are set to continue, with the value of hotel sales in the first quarter of 2014 coming in 150% higher than the same period last year, according to real estate adviser Savills.

The firm highlights that a total of 13 hotels worth almost €85 mln have been sold in the first three months of 2014 against a total of six, worth €34 mln, in Q1 2013.

Tom Barrett, head of hotels and leisure at Savills Ireland, said: 'It has been a solid start to the year for the Irish hotel market. Turnover at the close of the first quarter is significantly ahead of the Q1 2013 volume, however this does not factor in the number of transactions that are at the sale agreed stage. With these included almost €150 mln of hotels were transacted or agreed to be sold by the end of Q1.'

He continued: 'Demand is certainly high, the recent IPO by Dalata Hotel Group and the emergence of funds targeting acquisitions in this asset class should continue to drive demand for hotels in prime locations. Combining this with the steady flow of properties coming up for sale, we expect the sector’s transaction volume in 2014 to exceed the €200 mln of sales recorded last year. Based on the market activity so far and our visibility of what is coming to market, we expect sales to exceed €300 mln by year end.'

Savills reproted that significant hotel sales in Q1 2014 include the Hilton Hotel Dublin for approximately €30 mln, the former Clarion Dublin Hotel Airport Hotel and Doonbeg Golf Resort, both in the region of €15 mln. Dublin properties launched in the last week include the Portmarnock Hotel and Golf Links (on the market for €20 mln) and the Pearse Hotel (€9 mln), with the Westin Hotel due to come to the market shortly.

The most recent overseas visitor numbers are also a positive indicator for the hotel property market according to Savills, with an 11.3% increase in the total number of trips to Ireland recorded between December 2013 and February 2014 compared to the same period 12 months earlier.

Barrett concluded: '2013 was a very good year for tourism in Ireland with the number of visitors from our key markets in Britain and North America rising strongly. This growth has continued into 2014 and we expect it to have a positive influence on the Irish hotel sector going forward.'